Orange County struggling with lack of product, but will remain resilient
Industrial assets in Orange County, Calif. remain the favorite product type for investors in 2019, as cap rates continue to provide returns on investment. Orange County fundamentals remain resilient through market uncertainty and will continue to post record-breaking sales prices and asking rents, reported Cushman & Wakefield.
The market continues to struggle, however, with a lack of available quality product to keep up with record demand, which is hindering further rent growth.
Year-to-date leasing activity reached 6.7 million square feet in the third quarter, an increase of 1.2 percent from the same period a year ago. Renewals, which are not included in leasing statistics, continue to dominate the big-box activity due to the lack of available options.
Over the past 12 months, Orange County has completed nearly 1.5 million square feet of new warehouse inventory as developers race to build, given the rising rents and low vacancy.
Orange County ended t